Oando To Execute N12bn Shell Drilling Oil Rig Jobs Contract In Niger Delta

Oil Rig Jobs -A subsidiary of Oando PLC an indigenous operator of swamp drilling rigs, has won a two-year drilling contract valued at N12 billion with Shell Petroleum Development Company (SPDC) in the Niger Delta. According to a source close to Oando, the contract has saved a sizable amount of foreign exchange, and has generated over 200 direct and indirect jobs.

It is also a bold move by Shell to encourage indigenous companies and enhance the local content, some industry sources have said. OES Passion brings to three, the number of rigs the company has in its fleet as it is currently executing drilling contracts for some major oil companies in the Niger Delta.

OES Passion, as the rig is called, is a unique swamp barge with sequential well drilling capabilities and a skidding system that enables it drill up to six wells in one location. Formerly known as Parker 75, the oil rig jobs entered into service in 1999 and it is rated to 3000HP, and able to drill up to 25,000ft in water depths of up to 16ft.

With a technical team that was 99percent constituted by Nigerians, several competent indigenous contractors, and the refurbishment project undertaken at the Federal Lighter Terminal in Onne, Port Harcourt, this project is a testament of Oando’s support for the Nigerian Oil Field Jobs & Gas Industry Development Content Act and local capacity development programmed of the Federal Government.

To ensure optimal performance on deployment, OESL is committed to a comprehensive lifetime enhancement programmed after purchasing the rig in 2009. This upgrade included the restoration of the cantilever skidding system which is expected to save the client up to 30 days for every six wells drilled; thus, significantly reducing the overall cost of drilling campaigns. Also modernized were the mud pumps, the electric-motor driven engines, the top drive and the accommodation module.

According to Bandele Badejo, chief executive officer, “The deployment of this rig further underlines OESL’s commitment to ensuring competent indigenous companies take advantage of the provisions of the Nigerian Oil & Gas Industry Development Act. We remain resolute toward developing Nigeria’s upstream service industry and continue to set the benchmark for performance.

Following the success of our previously deployed rigs, built a reputation as the drilling contractor of choice among the major oil companies and we will not relent in our mission to be the upstream preferred supplier of choice as we strive to achieve better operating efficiencies and better safety performance for our clients and other stakeholders.”

Also commenting, Wale Tinubu, group chief executive officer, said: “Our business strategy of diversification and expansion into the upstream oil & gas sector is yielding positive results, thereby consolidating our leadership as Nigeria’s foremost indigenous integrated energy conglomerate.”

He said in 2011, “our upstream division accounted for approximately 33percent of the group’s profits and this year, we are committed to further increasing our footprint in the upstream sector as we help to meet the nation’s energy challenges. Subsequently, our fourth rig is billed to be deployed in the last quarter of 2012 in line with our resolve to increase earnings by maximizing opportunities in the upstream space.”

According to him, the contract is an affirmation of the company’s belief and indeed proof that indigenous companies can execute at world class levels. Alberta oil careers Passion, he said, brings to three, the number of rigs.